Pepsico

I made the corrections to 25 and 27... Jeremy 4pm



Reorg looks great. **__Can someone edit the blue border boxes on slides 25 and 27__**? (I'm opening in ppt format so maybe that's throwing it off) They aren't boxing the questions like they should, they're a little off. Other than that I like the recommendations and new order.

Kyle 1:40pm

I agree Ray, it flows better. I went ahead and added the title slide with a picture of PepsiCo I found and a "Questions?" slide at the very end to close it out. I think it looks pretty good. I will check back before I leave for class and look through it again.

Jeremy 1:30pm





I did a pretty major reorg of the slides. I also changed the wording of our secondary questions to better fit our slides. Let me know what you think and if we should use this one or the previous version. I wont be able to check back until about 4:30 today.

Ray 1:00pm

I did the reorg that I mentioned below. I will check back in a little later, heading to a meeting right now Jeremy 11:00am



Anyone working on any other slides or the reorg? I think we have a lot of good slides, but not sure if it flows. I am getting pretty slammed at work so not sure I will be back on until before class. Also, do you think we should conclude the presentation with a recap slide or 2 of our recommendations, just to tie everything together? I know we have them scattered throughout the presentation but maybe something kind of like we did last time with the primary question and then all the recos on 1 slide.

Let me know what you think.

Ray 9:53am

I tried to come up with something on the "better-for-you" options. Hard to do as the info is pretty much covered here and there on other slides and I did not want to duplicate. If it sucks don't feel you have to use it. We need to make sure as edits are made today that we do not contradict info on other slides.

I recommend changing the "consumers' preferences" in the main question to just "consumer preference". It is less awkward.

2 additional slides for the last question. I'm calling it a night. Aside from the gap Ray mentioned, the reorg Jeremy mentioned needs to be done. PBNA still not mentioned in the long term division success outlook. Also, power or one strategy isn't mentioned until my slide near the end. Complimentary goods is mentioned often, but I think it is important to call out the name of the strategy in their terms.



Dan 10PM Sunday

I could go either way on aunt jamima.

Con: Doesn't fit food/bev. Doesn't fit healthy Pro: It is the market leader...both mix and syrup. That's worth something.

I'm working on that last question now.

Dan 8:45PM Sunday

I am signing off for the night. I will be checking in again first thing in the morning. Let me know if I need to do any additional slides or topics. It is looking good so far, I think the one thing we need a little more of is the good for you, better for you (healthy trend) in developed markets. I think Quaker plays well there.

Thank, Ray 8:30pm

Thanks for joggling my memory...I was thinking of the oatmeal as healthy last night but totally forgot today...and I had it in the middle of the slide :) Updated file below Kyle 8:06pm Sunday

Aunt Jamima should probably go. Cereals could be innovated toward healthier options. The rest of the line is more "healthy" and should remain in their future plans. Tom 7:50pm

Do we just want to sell the entire Quaker Foods line? Or can someone think of justification for leaving the Quaker Oats/Oatmeal under the PepsiCo future? It makes sense for the cereals and Aunt Jemima but the Oats/Oatmeal lines are strong performers, especially international. Kyle - 7:45pm

That would make more sense, it does not fit under the question. Or maybe even adding another question about their success or failure in responding to changing consumer preferences and how those changes translated into profit. Of course their are bits and pieces of that success on other slides so who knows.. Tom 7:40pm

From version #6... What if we took slides 10-12 out of question #2 and placed them after "**What does the success of PepsiCo's divisions look like long term?"** to answer the FLNA part? Let me know what you guys think. Jeremy

You bet Dan. I'll edit my slide to sell the cereals. I'll add a slide about the sweet vs. salty and either do acquisition or sell the sweet. Kyle

Status Pep Intl and QO covered. PBNA and FLNA not covered || I'll take ownership of the last question and be back on around 9PM. My basic answer will be that they should have narrower divisions internationally to better market, develop product, and react to consumer tastes. Putting everything in 1 international bucket is a weak move. They should have a Pepsi Beverage Asia and Frito Lay Asia for example. Let me know if there are thoughts or concerns with this recommendation.
 * **What has enabled PepsiCo to grow to be the world's largest snack and beveragy company?** || Answered ||
 * **How is the performance of PepsiCo's current product portfolio?** || Answered - Flow is a wreck ||
 * **What does the success of PepsiCo's industries look like long term?** || Answered ||
 * **What actions could Pepsi take to better position its portfolio?** || Answered ||
 * **How is PepsiCo organized, and what is the performance of each division?** || Answered ||
 * **What does the success of PepsiCo's divisions look like long term?** || Partially Answered:
 * **What actions could Pepsi take to better focus the structure of the organization towards high growth markets?** || Not Answered ||

Dan 5:25 PM

- added slide 4 and 5 about successful growth strategies - reformat slide 6. Ray this is a reformat of one of your original slides - added slides 15 and 16

Kyle, sell cereals because it jives with my slide right before yours. Also need to acquire or divest in the sweet snack line. The case doesn't give too much detail on sweets, but it does say that Pepsi has 70% mkt share in US salty. And only 21% when salty sweet combined. I interpret that as they suck at sweets. Grandma's cookies aren't getting the job done.



Dan 5:15PM

I added the slide about divesting Aunt Jemima and Rice-A-Roni/PastaRoni. I didn't indicate to sell Cereals but I could easily see where that would make sense. If someone feels it should be sold too please let me know. The Red Bull Acquisition slide is in there as well. I'll look back in a few to see where other areas in the ppt needs work - specifically the organization of idease. As I read through the entire ppt the order is off.

Kyle 5:00pm Sunday

I went ahead and started on a recommendations slide and placed it at the very end. I included Ray's formulas in the slide to show that our recomendations go along with the success and growth formulas PepsiCo has used in the past. Also, cleaned up a few slides - most of mine I was not capitalizing the C in PepsiCo.

Jeremy 4:10pm Sunday



I'm working on the following question: "What actions could PepsiCo take to better position its portfolio?" Kyle 3:30pm Sunday

First stab at a reorg. I still think there are some flow issues and potential for repetition, but we'll have to look at that in the end.



I'm working on this question (What does the success of PepsiCo's industries look like long term?) and then I'll grab something else.

Dan 2:30PM

Works for me. I think my slides could be fit in amoungst these topics. Let me know if you need any more from me. I will be checking back in later tonight. At NKU right now working on Costco.

-Ray 1pm

My reccomendations of secondary questions with some potential talking points in <>...   
 * 1) What has enabled PepsiCo to grow to be the world's largest snack and beveragy company?**
 * 2) How is the performance of PepsiCo's current product portfolio?**
 * 3) What does the success of PepsiCo's industries look like long term?**

  
 * 4) What actions could Pepsi take to better position its portfolio?**
 * 5) How is PepsiCo organized, and what is the performance of each division?**
 * 6) What does the success of PepsiCo's divisions look like long term?**
 * 7) What actions could Pepsi take to better focus the structure of the organization towards high growth markets?**

The structure is a little different with recommendations sprinkled throughout, but I think it adds flow. Thoughts?

Dan 12:45PM

How about changing to "exploit growth opportunities in developing markets"?

Also, acquiring Red Bull is key for energy drink market. They are heaviliy investing in competing with it with Amp Energy Drink to compete with Red Bull and I doubt that stuff is seen as an option to Red Bull like they intended.

Note how profits are driven in each category by the so called health conscious customers. Healthy offerings seem to be the driver of the largest profit growth everywhere.

Team - I read through the case last night. I'm off to church but I'll be on here working as soon as I get back. I have all day too to work on this case.

Optional re-wording of primary question as I agree with Ray that divesting some of the Quaker brands will be key.

"Is PepsiCo strategically aligned to respond to changes in consumers' preferences in order to continue their strong performance in Norther America and strengthen their presence in developing markets?"

I still don't like the "strengthen their presence" wording - I think that can be more specific. I'll be on in a few hours

Kyle 9:40am Sun

Team, I just finished the case. I apologize, a bit behind on this one.

I agree with the primary question. The slides look good so far. Once the whole thing is closer to done we'll just have to pay closer attention to overall flow.

Some thoughts... 1) I think it is interesting how Pepsi consistently turns threats into opportunities. New fast-growing competitors are acquired. Changing consumer tastes are adapted to. 2) Energy drinks are a gap in their product offering as SoBe doesn't appear to be getting the job done. I agree acquiring Red Bull (or Monster) is a good recommendation. 3) Like Adidas, Key to the case is the differences in North America and Intl. Consumer tastes are different. Currently, the contribution to overall company profitability is different. The corporate organizational structure is different (NA = product segment vs. Intl = region).

I'm out of gas tonight. I'll be back first thing in the morning with secondary questions and to work on slides.

Dan 9:30PM Sat

Guys, I am not available until Sunday but I have all day then. Worked all day and not I am off to a bachelor party. Tom

I added my slides to the end of Ray's. Feel free to make comments or changes, I will continue to work on these and add to anything else that is added later.

-Jeremy 2:40pm Saturday

Looks good Ray, I agree with your recommendations below that they should look to aqcuire international snack and beverage companies. I think we can use the formula you have on your third slide to show that they have done this in the past and only makes since when they continue to grow internationally. I am working on some slides about Frito Lay North America and the Salty Snack Food Industry. Once I have some of those done I will add them to yours. From my first glance everything looks really good.

Jeremy 1:40pm Sat.

Here is what I have so far. Kind of a mix of different ideas. I think a key point is that Pepsi is good at mergers and acqusitions and that is the best way for them to continue to grow international presense. Identifiy and determine what companies to buy that know what the local customer's taste preferences are and then use Pepsi's brand building and managment strength to grow it.

Let me know what you think.



-Ray 1pm Saturday

I will also be making a heirarchy slide or two about how Pepsi is organized, and the relative performance of each. Should have some stuff out by noon today and then I probably will not be back on until late tomorrow afternoon. Packing up the house this weekend.

I think I would rather be making Powerpoint slides :)

-Ray Sat 9:13 am

Hi guys,

Just got done reading the case. I find it very similar to adidas. Pepsi, Frito and Quaker are strong in N. America but as strong in the more attractive developed and developing markets, especially China. Quaker, with the exception of Gatorade, is very weak outside of US. Other thing that seems to be going on is shift in developed countries towards healthier snacks and drinks. That is a threat to Pepsi, but also an opportunity if it can either create or acquire the right product.

I think acquiring companies and then building or continuing to strengthen their brand is what Pepsico does well. It does not really ever come up with a new product, but buys an existing product and then either works to make it better (healthier) or markets it really well.

My recomendations would be a focus on acquiring existing international companies in the snack and soft drink business. They should also start trying to divest some of Quakers brands (like the cereal and pancake stuff) since it does not fit their core business of snack and drink. I also think Pepsi should acquire Red Bull. They do not have much of a presence in energy drinks and fit the Pepsi image.

Side note - i think PEST is key here, lots of stuff going on in external environement impacting pepsi (govt reg, developing countries, healthier lifestyles).

As for a key question, maybe something like "Can Pepsico continue their strong performance in the North America market, and also strengthen their presence in developing markets, while at the same time responding to changing customer preferences?"

For secondary questions.....

How has Pepsico done well in the past to grow (acquisitions) What markets are attractive today for Pepsi and which posess the most opportunity for the future? How is Pepsi structured and what are the relative performances of those divisions? How are those divisions performing in various markets?

I will work on a PEST as well as some slides about the attractiveness of markets, similar to what I did on adidas, but breaking it down more by product type. I should have those out by saturday afternoon. Trying to reserve Sunday to work on Costco.

-Ray 4/22 at 7:40pm